The Open Geography Journal, 2011, 4, 73-90 73 Open Access Bordeaux Wines: An Archetypal Terroir Cluster? Marie-Claude Bélis-Bergouignan*

Research Group on Theoretical and Applied Economics, Université Montesquieu, Bordeaux IV, Avenue Léon Duguit, 33608 Pessac Cedex, France

Abstract: The object of the present article is to use the example of the cluster concerning Bordeaux wines to show that the opposition between the porterian brand cluster and the terroir based cluster is simplistic. We intend to reveal how the Bordeaux wine cluster, reputed for being the archetypal terroir based cluster, derives from each dimension. First, if this cluster was historically built around a strong territorial identity, this is not the only definition of the traditional Bordeaux model. Second, during the nineties, this model was subject to a lot of internal and external tension, linked in particular to its difficulties to face shifts in the international wine market. Considerable transformations have already been taken on: they combine the reassertion of the reference to terroir with the renewed dimensions of innovation and competitiveness. Keywords: Bordeaux wines, châteaux, cluster, competitiveness, terroir.

1. INTRODUCTION World wines and the barely resistible rise in New World wines in a context of globalization [6] has provoked intense Those who are even only remotely involved in local interest from both researchers and policy makers [2]. This industrial developments must, today, be aware of the cluster context has marked the opportunity for distinguishing concept. Porter [1, p. 78] defines a cluster as a form of between porterian vine-growing and wine-producing organization whose competitiveness is based on the clusters, oriented towards innovation and competitiveness, existence of close relations between actors linked by and terroir vine-growing and wine-producing clusters. common or complementary objectives, rooted in a given Hence the dissociation between the traditional model, based territory. Aylward [2, p. 248-249] particularly underlined the on the Old World producers’ terroir, and the model said to universality of the concept. It is, first of all, a privileged be "technological", based on New World producers’ variety representation of the territory, expressing both the of vine. As the terroir model has its weaknesses, Old World spontaneous modes for implementing the economic activity producers, particularly French producers, should be and the competitiveness of the places where it has been built. revitalized through the inspiration they can find in the New Secondly, it can be a public policy strategy aiming to World’s best practices. improve the economic and competitive performance of a given economic and territorial area. The object of the present article is to use the example of the cluster concerning Bordeaux wines to show that the The universality of the concept collides with the opposition between the porterian cluster and the terroir diversity, observed in the territories, and which refers to the based cluster is simplistic and artificial. Thus, we rely on the multiplicity of sector-based specializations, as well as to the idea that the specificity of agrofood clusters do not lie in the specificity of both the production’s local dynamics and the intrinsic nature of the terroir but, rather, in the specific interactions between the players, who make up the territory. articulation of their territorial and socio-economic Hence the importance for procedures focusing on the dimensions. In fact, we will reveal here how the Bordeaux analysis of the territorial dynamics as observed in specific wines cluster, reputed for being the archetypal terroir based clusters, such as the Californian wine cluster, which has been cluster, derives from an articulation of these dimensions. used as a privileged example in Porterian analysis [1]. First, if this cluster was historically built around a strong The dependence of vine-growing and wine-producing territorial identity, this is not its only definition. The clusters on its territorial resource has traditionally been traditional Bordeaux model, as it was defined in the emphasized as wine companies have always emerged in seventies, and which can, in some respects, be qualified as proximity to grape-growing regions [3]. This dependence has archaïc [7], has developed immensely. During the nineties, it been formulated in terms of “site specificity”, according was subject to a lot of internal and external tension, linked in Marshall’s theory [4]. These wine clusters have been particular to its difficulties to face shifts in the international analysed, notably by Porter [1-3], in terms of geographic wine market. Considerable transformations have already proximity effects [5]. Subsequently, the crisis affecting Old been taken on: they combine the reassertion of the reference to terroir with the renewed dimensions of innovation and

competitiveness. Beyond its empirical aspects, the Bordeaux *Address correspondence to this author at the Research Group on Theoretical wines case study aims to provide a contribution to the cluster and Applied Economics, Université Montesquieu, Bordeaux IV, Avenue theory by showing that the agroclusters’ territorial dimension Léon Duguit, 33608 Pessac Cedex, France; Tel: +(33) 5 56 84 85 53; +(33) 5 56 84 86 47; E-mails: [email protected], is not limited to geographic proximity or to “natural” [email protected] characteristics. The specific articulation of terroir to the cluster’s organization and strategy contributes to the

1874-9232/11 2011 Bentham Open 74 The Open Geography Journal, 2011, Volume 4 Marie-Claude Bélis-Bergouignan comprehension of the coevolutive nature of the cluster’s The following elements offer contextual insight into the dynamics. identity of the vine-growing and wine-producing area concerning Bordeaux wines. They comment on some of the The present paper is structured as follows. Section 2 data compiled in Table 1. Vine-growing and wine-producing deals with the empirical and contextual dimensions of the research, introducing the features of the Bordeaux wines activities confined to a given territory, Gironde a South-West French department, can be considered to be in character with region. Section 3 focuses on the theoretical cluster the first dimension of a cluster, i.e. the geographical framework, emphasizing its main analytical dimensions and proximity, as stressed by Boschma [5], and exhibited in the drawing some evidence from the contribution of this following map of the cluster. Indeed, this territory is framework to the analysis of wine clusters, focusing characterized by the colocation of an extended group of vine specifically on the territorial dimension. The following two sections analyze the dimensions of the Bordeaux wine farms, so that eight out of ten farmers cultivate the vines, whose land covers nearly half the Gironde agricultural area, cluster in the light of the principles exhibited in Section 3. i.e. nearly 120 000 ha. In addition, the area is highly Section 4 focuses on the cluster’s key players’ structured specialized: wine businesses, which are localized in the same interactions, which may or may not be marketable, and on area and involve specific skills, benefit from a common the transformations which they recently incurred. Section 5 regulatory framework and a prominent insertion in leading is devoted to the territorial dimensions concerning the regulations by which this cluster is determined, at varying trade flows. These elements, which we have detailed below, reinforce the hypothesis that Bordeaux wines may be subject spatial scales. Finally, Section 6 is devoted to a reflection to a representation in terms of cluster. upon the future of the Bordeaux wine cluster; an issue of strategic governance trying to evolve, according to Mytelka First, agricultural areas dedicated to producing wine are and Farinelli [8], from a spontaneous cluster, whose strictly confined by the regulations of the designation, regulation results mostly from the willingness of actors, to an the “Appellation d’Origine Contrôlée” (AOC). The AOC organized cluster, characterized by a common organized defines the area of production (geographical boundaries development strategy. clarified by “appellation”) and selects the proportion of grape varieties which authorizes planting varieties expected 2. EMPIRICAL AND CONTEXTUAL DIMENSIONS to guarantee the type of wine produced and prohibits others. OF THE RESEARCH It also defines the minimum required percentage of alcohol, Information gathered for this research was obtained as well as the maximum yield, going hand in hand with through different channels. First, the paper draws on an in- cultural practices in line with planting density and the depth survey of literature dealing with the French wine vineyard’s methods of working. In 30 years Gironde’s AOC industry, and particularly, that of Bordeaux. This literature area has increased by 81% and the average AOC yield per ha includes the following two sources. Firstly, books dealing has increased by 53% while annual allocations of planting with the analysis of the Bordeaux wine model from an rights have resulted in the conversion from mixed farming economic and historical [7-9] perspective, but also French operations, including secondarily cultivated vines, to reports dealing with the crisis and issues concerning the monoculture vineyard activities4. Nowadays, vine-growing Bordeaux wine cluster [10]. The paper also draws on various areas are essentially devoted to the production of wines empirical papers dealing with the same subject, some of having received the AOC’s approval, that is to say, 95% of them stemming from previous personal research, mainly still wines5 and for 89% of red wines (cf. Table 1). focused on the analysis of strategic operations and These figures are well over the national average: the concentration in the Bordeaux wines area [11, 12] and on the national share of farm land devoted to vines represents 3.2%, vine-growers’ innovative behaviour, notably their whereas in Gironde it represents 48.1%. The large majority environmental innovations [13]. of vineyards is still devoted to ‘‘conventional’’ practices as Secondly, we have used both quantitative and interview- their environmentally-friendly practices remain individual based qualitative material. Quantitative data were collected and, for this reason, not so well identified up to now despite between 2008 and 2009, using several sources: regional public labels. For instance, the Integrated Agriculture label, industry data collected by INSEE1 or by the Agriculture issued in 2002 in France, has been adopted by about a Ministry through the Agreste2 website or data collected and hundred of vine-growers in Bordeaux area6. As for organic presented by CIVB (Inter-professional Council for Bordeaux viticulture, according to Syndicat des Vignerons Bio7, the Wine)3, statistics collected for their own use by professional Bordeaux vineyard increased its surfaces rapidly in the last 5 unions of cooperatives and wine-traders. To acquire years but they are still limited: it exhibits over 1,100 ha supplementary information on the main interactions and (about 1% of the Bordeaux vineyard) and about 180 vine- innovative attitudes, we have conducted thirty in-depth growers. interviews in wine châteaux and with cooperative leaders By the way, the Bordeaux wine region, which ranks and traders. among vineyards with coherent viticultural identity [9], is increasing in appellations with a total of 57. The map

1The French organism producing official statistical information at national 4Agreste Aquitaine: http://oav.agreste.agriculture.gouv.fr. and regional levels (http://insee.fr). 5Still wines are those which have no carbonic mobility, as opposed to a 2Agreste Aquitaine: http://oav.agreste.agriculture.gouv.fr. sparkling wine. 3The CIVB (Conseil Interprofessionnel du Vin de Bordeaux) has existed 6Source : UIPP (http://www.uipp.org/). since 1948. This organization unites three professional families: wine 7Syndicat des Vignerons Bio d’Aquitaine (http://www.vigneronsbioaqui brokers, vine-growers and merchants (http://bordeaux.com). taine.org). Bordeaux Wines: An Archetypal Terroir Cluster? The Open Geography Journal, 2011, Volume 4 75 presented above identifies, in 2009, for reasons of clarity, 36 3. WHICH THEORETICAL CLUSTER FRAME- main entities which account for these 57 AOCs. WORK? Rules differ according to each appellation. Concerning 3.1. A Fruitful Concept for Analyzing the Systems for the proportion of grape varieties, the main red vine varieties Local Food Production are black Merlot (62%), Cabernet- Sauvignon (25%), and Cabernet franc (12%) (cf. Table 1). According to AOC, Porter has contributed to placing clusters at the heart of allotment between different varieties is heterogeneous: for institutional and economic debates, by giving a sense to the example, there is more of the black Merlot in Saint-Émilion paradox of globalized economies having to put their than in the Graves area8. Similarly, the planting density competitiveness on a local scale to the forefront of their varies according to the appellation: high density (8,000- concerns. However, if this analysis has proved that there are 10,000 vine stock/ha) for prestigious appellations (Pessac- advantages, some authors have ticked off excessive use of Léognan, Margaux, Saint-Julien); lower (5,000 to 6,000 vine the “catch-all” concept [14]. Others have assessed the stock/ha) for the Libourne area and regional appellations applicability of the cluster for the analysis of industrial (Médoc, Graves and Côtes); very low density (2,000 vine sectors, but denied the use of this model to analyze agrofood stock/ha) in the Entre-Deux-Mers area9. Imposed yields and sectors. alcohol percentage also vary from one AOC to another and Individual critics have focused specifically on the local regardless of any relation established with the planting dimension, but with conflicting assessments. First, this concept density. Consequently, it is understood that, depending on raised some difficulties in the agrofood sectors, especially in the the appellation, the same authorized level of yield per developping countries, as some researchers rejected Porter’s hectare gives very different qualitative results. definition as it did not accentuate enough the territorial In terms of turnover, the Bordeaux wines area dimension [15]. However if the strict “geographical and represented, in 2007 (cf. Table 1), the 1st vineyard in France sectoral” definition satisfied some researchers, others, on the in AOC volumes, the 1st AOC vineyard exporting still wines contrary, have been known to protest against underlying (32% of French exports in still wines); domestic sales presuppositions putting geographical proximity at an advantage represented 67% of turnover. The Gironde region owes a lot [5-16]. If territory is the key concept which inspires all the to vine-growing and wine-producing regarding economic regional public policies, it is not by leaning exclusively on performances: 10,000 harvest declarants, 400 merchants agglomerations of activities that economic growth and marketing 75% of production, 100 wine brokers, 44 competitiveness will generate. In reality, knowledge creation cooperatives and 4 cooperative unions, 56,000 direct and and innovation are fundamental in regards to the development indirect jobs. of clusters. Hence, the focus on analysing the links between capacity for learning [16, 17] and territorial anchoring10. If the The quality of grapes is the result of the interaction of 4 “spatially bounded” character of knowledge flows has been factors: the site, the climate, the type of soil and the highlighted, it appears that the nature and intensity of the proportion of grape varieties. There are two sides to the interactions are not only associated with the geographical topography of the Gironde: to the west, a plateau going proximity. down to the Atlantic coast; to the east, a sinuous and hilly, low plateau. Bordeaux enjoys a mild, oceanic climate and In turn, by stressing more on the globalization process, has a range of soils particularly favourable to growing vines: some researchers focused on the domination and, gravel, composed of cobbles and sand, which filters easily consequently, the deletion of territories. For example, and has calorific properties which encourage grape Hendrickson and Heffernan [19] studied the rise of global maturation; soils which are essentially argilo-calcareous of a food chain clusters and their extension into food retailing. moist character. Irrigated by two large rivers, the Garonne From this globalization process, one might have concluded and the Dordogne, as well as by numerous streams, that local food clusters could lose all possibility of control Bordeaux’s vineyard has the advantage of hydric conditions over the decision process. Instead, these authors show that which are favourable to quality wine growing. It is the global food systems are vulnerable, as they are increasingly interaction of both climate and site that form several unstable. From this attribute, they infer the existence of localized climates. A microclimate, depending on the nature windows of opportunity for territories, on the side of of the soil, defines an environment known as a terroir, which consumers and/or producers. This argument contributes to is a complex notion for further thought (Section 5). supporting the hypothesis of the diversity of viable strategies for agrofood players in the territories. It also induces the To be satisfied with this presentation implies accepting inclusion of more collective, organizational and regulatory, only a limited view. The previous paragraphs aimed at issues. describing the main features of Bordeaux wines in terms of geographical or pedoclimatic characteristics and of the Therefore, the organizational structure [20] which governs critical mass of vine and wine activities. As shown in the interactions between companies, training and research centres, next paragraph, this description has introduced the and regulatory authorities has to be taken into account, given hypothesis of a cluster, but falls short of esteeming the that these may be local or outsourced interactions. Following Bordeaux wine region as a cluster. The analysis now needs Rychen and Zimmermann [21] “on the one hand, territories can to be clarified by exhibiting a specific framework so as to go beyond this first step. 10The foundations of territorial anchoring, as regards technological and industrial activities, lie in the conjunction between the aspects of organizational proximity, indicating the intra-firm or inter-firm industrial 8Source: CIVB (http://bordeaux.com). dimension, and the aspects of geographical proximity, on which the 9Source: CIVB (http://bordeaux.com). territorial dimension is founded [18]. 76 The Open Geography Journal, 2011, Volume 4 Marie-Claude Bélis-Bergouignan

Table 1. Bordeaux Vine-Growing and Wine-Making Cluster Identity Card for 2007

Areas Players Largest French AOC vineyard (ha) 57 appellations grouped within 28 Management Organisms (ODG) remplacing • 2007: 120, 215 ha 57 viticultural unions • 2005: 123, 334 ha • 10,000 harvest declarants Harvest • 400 merchants marketing 75% of production • 2007: 5,7 millions hl (2005: 6 millions hl) • 100 brokers Red: 89%, white: 11% • 44 cooperatives and 4 cooperative unions Bordeaux represents 2.3% of world wine production • 56,000 direct and indirect jobs AOC groups (total vineyard area %) Vine varieties in area % Bordeaux and Bordeaux Supérieur: 46.1% red: white: Médoc and Graves: 16.7% Merlot (62%) Sémillon (54%) Saint-Émilion / Pomerol / Fronsac: 10.2% Cabernet Sauvignon (25%) Sauvignon blanc (36.5%) Red Côtes: 14.4% Cabernet Franc (12%) Muscadelle (6.5%) Dry white: 7.6% Secondary varieties: Secondary varieties: Colombard, Merlot Sweet white: 3.2% Cot (or Malbec), Petit Verdot, blanc, Ugni blanc (4%) Carmenère (1%) Development of 2007 sales in volume Adaptation measures of supply and demand Pomerol, Saint-Émilion, Bordeaux Supérieur: - 5% Grants for grubbing out Fronsac: + 3% Bordeaux White: + 2% • prohibition of new plantings until 2016 Médoc, Graves: + 2% Bordeaux markedly sweet (Moelleux): • replanting allowed where producers undertake to grub up equivalent areas Côtes Bordeaux: - 4% + 7% planted with vines Bordeaux Red: - 6% Bordeaux luxurious dessert Grubbing in Bordeaux area (Liquoreux): + 2% 2007: 1,000 ha (2006: 1,200 ha) Strongly restrained voluntary and assisted distillation • 2006: 368,000 hl of wine Turnover: 3.4 thousand million
Exports in 2007: 1.94 million hl (+7%) for turnover 1.39 thousand million • 1st French vineyard in AOC volumes
(+9%) • 1st AOC still wine exporting vineyard Export sales 33% of turnover = 32% of French exports in still wines (29% in 2005) • 1st place for home consumption Proportions: Sales in France: 67% of turnover - 63% to EU; 37% to non EU countries • 1st place in supermarket sector (43% of home sales) - 85% in red wines (+ 6% in volume); 15% in white wines (°+8% in volume). • 15% in hard discount • 42% to other circuits (direct selling, restaurants, wineries etc.) Affordable Bordeaux: Top-ten of Bordeaux brands (000 cases)

- eligible wines already imported to a given country; Mouton-Cadet (Baronnie): Dourthe n°1 (CVBG): 150 - situated in a consumer accessible price bracket (4 to 15
). 1,100 Marquis de Chasse (Ginestet): 125 - wines registered blind tasted by a panel of local experts, Malesan (Castel): 1,050 Premius Exigence (Yvon Mau): 75 acknowledged professionals (sommeliers, journalists, etc). Baron de Lestac (Castel): 750 Calvet Réserve (BVC): 85 A selection of 50 to 100 wines having obtained the best marks is Cellier Yvecourt (Yvon Sirius (Sichel): 80 accepted. Each selection is the subject of a booklet (downloadable Mau): 375 version from CIVB site: bordeaux.com) Ginestet (Ginestet): 250 Source: author from CIVB (bordeaux.com), Agreste data (http://agreste.agriculture.gouv.fr.), Wine Business International, October 9th 2006 (www.wine-business- international.com/wbi_1_2006france.pdf). no longer be considered as closed systems, and the questions of the territorial dimension contained in the Porterian vision, internal and external coordination cannot be regarded preferring to glorify the competitiveness and innovation of separately. On the other hand, coordination does not require these clusters. Aylward [22] thereby shows the impact of the durable colocation: many regular interactions between partners concentration involved in government encouraged are satisfactorily achieved in spite of wide geographical productive structures, as well as in the incitation to export, separation.” This calls for a reconsideration of the territorial backed up by a structured marketing and mass marketing dimensions of wine clusters. policy, and in the support concerning R&D and innovation for developing a competitive cluster. Similarly, with regards 3.2. Vine-Growing and Wine-Producing Clusters: to the South African viticultural cluster, Ewert [23] Terroirs Versus Vine Varietal? underlines the advantages of deregulation and internationalization. The Cape wine performance is Taking the example of the New World vineyards—either remarkable considering that this industry has had to face a Australian [22] or South African [23]—some analyses shelve Bordeaux Wines: An Archetypal Terroir Cluster? The Open Geography Journal, 2011, Volume 4 77

‘shock to the system’ in terms of local industry deregulation, knowledge aspects but also symbolizing a common increasing integration into international markets and South territorial identity and transforming the perception of the African legislative changes. However, he assesses that these place in the public mind [26, p. 448]. Further, the simplistic mutations have had complex effects. On the one hand, the character of the terroir/vine varietal opposition may be industry has incurred an impressive expansion and a outdated if we return to a cluster analysis taking into account sustained rise of exports. On the other hand, many smaller the players’ interactions, and their dynamics. In the cooperative wineries now find it difficult to survive in this emergence and development of vine-growing and wine- deregulated environment, as they are locked in a mass producing clusters, Giuliani [28-30] highlights the role of production trajectory which they find difficult to abandon. learning and of interaction within internal and external This situation calls for new institutions, regulations and networks. “Using evidence from two Chile and Italy clusters, habits, which the government is trying to set to assist them she finds that firms’ internal knowledge bases and their through the transformation. These two examples demonstrate external openness are more significant than intra-cluster the idea that “the cluster model neo-liberal development embeddedness in explaining innovation” [29]. In the end, a based on international integration has to be tempered” by at cluster’s viability owes as much to knowledge linkages and least two remarks: in any event, a strong impulse of public collective learning devices [30] and to local-global help is needed, and secondly, new rules are required as interconnections [31] as it does to market interactions “deregulation and internationalisation have created a between players. situation of ‘winners’ and ‘losers’” [23]. Our analytical framework will be, finally, enriched Similarly, further research has focused on Old World considering another dimension, based on Mytelka and wines, praising its territorial aspects. Nevertheless, the Farinelli’s framework [8]. Their analysis highlights some territory has been and still is a central element in the critical points about the distinction between a spontaneous organization of the world’s wine industry and the corner cluster and an organized cluster. They particularly show that stone of the marketing strategies of the field’s players. the organized cluster is characterized by the following Conversely, the term, anti-terroir would define the future dimensions: a larger spatial scale, the presence of strategy of the vine-growing and wine-producing world [24, predetermined, often administrative or regulatory, p. 77]. A particularly good illustration of the latter would be boundaries; the emphasis on R&T dimensions; a regulation specific plantation practices adopted in Chile. Some Chilean resulting more from a common development strategy than clusters have effectively set up a model for selecting from the willingness of actors. These elements enable us to plantation areas according to the desired vine and, thereby, highlight some of the actual features of the Bordeaux wine optimized the vineyard layout in vine varietal which is well cluster. integrated in international markets. Synthesizing all these different results has confirmed that The territory’s specific advantages would therefore be a wine cluster is at first characterized by the colocation of its easily comparable with those of a territorial rent, a fungible activities - i. e. their geographical agglomeration-, which monopoly rent. In opposition, a-territorial clusters would induces its boundaries and partly determines its territorial bring an innovation rent, particularly via the implementation anchoring. However, the territorial dimension appears to be of disruptive innovation [25]. For example, the emergence of shaped by a “complex and over-lapping series of economic, New World wines on the global market, within a market political and social processes” [26, p. 449]. These cultural dominated by wines judged to be more sophisticated, and and symbolic dimensions have to be articulated to the sometimes more expensive, would represent such a type of cluster’s distinctive interactions. At first, the cluster is a innovation. It would amount to the following outline: these complex system of sectoral and cross-sectoral networks of countries first understood how to exploit new consumers’ dissimilar and complementary firms, specialised around a preferences for a simpler and more reasonably priced specific link or a particular knowledge-base in a structured product; then, having attacked the low end of the global value chain including suppliers and consumers, but also market, they advanced to the upper segments, compelling universities, research laboratories, bridging institutions, traditional producers to flee to the highest segments, where within a competitive context (markets and competitors) the market share is tightening. (Section 4). Moreover, wine clusters must be characterized by the coevolution of this complex system with its cultural, Yet Overton and Heitger [26, p. 441] have pointed out symbolic and regulatory features at varying spatial scales, that some New World wines also “have begun to see value in among which the terroir is a distinctive dimension (Section using regional descriptors for their wine and in promoting 5). In the most recent period, we finally see that the certain regions as having special qualities”. So, New Zealand winemakers now refer to terroir, exhibiting a sort of difficulties encountered by the Bordeaux cluster facing globalization have led to opt for a strategic attempt leading hybridisation between New and Old World principles. The from a spontaneous cluster to an organized cluster [8] chosen example reveals much about “the way land and (Section 6). places are valued, revalued and promoted” not only through economic forces but also via regulatory protection and 4. THE BORDEAUX CLUSTER: A SUSTAINABLE terroir narratives. Thus, the terroir, deriving from the status NETWORK OF LOCALIZED INTERACTIONS of a generic asset, may now be seen as a specific asset LINKING KEY ACTORS [27, p. 561]11, not only subsuming competencies and This section aims to analyze how the localized interactions between players constitute a system: i.e. a set of 11The specificity is not intended here in the sense of constraint, as is structured interactions that configure this system, each of the sometimes the case, as it represents an advantage. 78 The Open Geography Journal, 2011, Volume 4 Marie-Claude Bélis-Bergouignan players taking on specific, but also scalable, functions. Fig. family company to the multinational, the wine business (1), below, brings to light the stylized features which offers a broad range of situations. constitute what is called the “Bordeaux model”, as it has These merchants sell either private owner wines or gradually formed. brands. In the second case, the wine bought from a vine- Players who make up the core of the cluster are found at grower or a cooperative winery is kept in merchant the centre of the ellipsis. Main organizations with whom warehouses to continue the different phases. Wine these players are in constant interaction, and which configure businesses have an important regulating role, regarding the Bordeaux wines cluster, are represented on the periphery. markets, as their storing capacities enable them to palliate, at least partially, price fluctuation. Thus, for a long period, 4.1. The Key Players Structuring the Core Value Chain these players were seen as the heart of the system, because Upstream, the productive system is organized by the the flows circulate through the trader’s decisive boost. product and market interactions of three types of players: The broker (there are around one hundred today) has an independent vine-growers, vine-growing traders and 12 intermediary presence which is historic in Bordeaux. The cooperative vine-growers . first wine merchants to come to Bordeaux were mainly Independent vine-growers, of which there are around foreign; the language barrier and the fact that they did not 5,000 today, produce grapes over approximately 70% of know the field brought about the profession of wine broker. viticultural area. These growers make their wines (about The broker’s role consists essentially in bringing the 71% of production) on the estate, producing an average of merchant closer to the vine-grower, in establishing an 800 million bottles every year. Only a small part of their agreement between the parties and in reporting to them. The production (16%), albeit rapidly growing over recent years, brokers also draw up official wine listings, taking into is subject to direct selling. account the transactions carried out on the Bordeaux market. Vine-growing traders represent the second category of Downstream in the wine value chain are the distributors vine-growers, which is considered marginal, yet increasing. who market the Bordeaux wines. In 2007 (cf. Table 1), 5.7 Large wine trading companies have recently acquired around million hl were sold for a turnover of 3.4 thousand million
. 6,000 ha (5% of viticultural area) either directly or in tenant Home sales represent 67% of the sold volume: 3.76 million farming, destined to produce their own wine, representing hl, for 2.01 thousand million
, and exports, 33%: 1.94 about 4% of volumes. million hectolitres, for a turnover of 1.39 thousand million
. Hypermarkets and supermarkets represent 43% of home Cooperative vine-growers, of which there are 4,900 sales: 1.61 million hl for a turnover of 907 million
. Hard- members for 44 cooperatives, producing 25% of the volume discount stores represent around 15% of the volumes of of wines produced, 98% in AOC, over roughly 25% of these home sales, which leaves 26% to HORECAs (Hotels, viticultural area. More than seven out of ten are individual Restaurants and Cafes) after roughly 16% have been taken vineyards, which are generally small-sized. Furthermore, into account for direct selling (from the estate, by mail order almost nine out of ten are known as “exclusive”, making and in trade fairs). their wine from their entire grape harvest in a cooperative winery, where wine-making and assembly as well as Ultimately, the local agglomeration of these actors, and packaging and sales services are ensured for their member the structured interactions from upstream to downstream, vine-growers, particularly via Cooperative Unions (4 in determine the central structure of the Bordeaux wines 2007). cluster. The consistency and sustainability of this configuration resulted in pecuniary and technological offsets, Cooperative members and independent vine-growers because of the density of local production processes. We have almost all the productive area, but it is the merchants shall see below that the processes of resource creation are who ensure marketing 70% of the volume of wine. There reinforced by a set of relationships with peripheral are, therefore, three types of participants involved in the organizations. process: independent vine-growers, cooperative wineries and traders. The bonds which unite these companies are mainly 4.2. Interactions with Peripheral Organizations Broaden based on relations concerning trade in raw materials (grapes) the Cluster’s Boundaries and the finished product (wine). Vine-growers can either sell Several types of players involved in the wine local their wine directly to consumers or supply grapes to productive dynamics can be found outside the central value cooperative wineries or wine merchants. Then again, they chain, with whom they interact: suppliers, regulatory and may choose to produce their own wine to sell, in bulk or bottled, either to wine merchants or brokers. The latter are representative organizations, technological and scientific resources, and players influencing conditions of the market. important intermediaries between wine-making and the These interactions define a network which broadens the business of selling. boundaries of the cluster beyond the central players. The Gironde can count around 400 merchants, who market 70 interactions with these various peripheral organizations % of the production of Bordeaux wines in more than 160 contribute to the overall efficiency of the whole system countries. It is a very dense sector where the first 44 through the complementarities built around the wine product. companies make 80% of the trade’s turnover. From the small It is worth signalling that these relationships go beyond the strict framework of localized relations, which is consistent with Giuliani’s analysis of wine clusters [29]. 12The following data are from the CIVB web site (http://www.bordeaux.com). Bordeaux Wines: An Archetypal Terroir Cluster? The Open Geography Journal, 2011, Volume 4 79

APPELLATIONS DE BORDEAUX

- Bordeaux & Bordeaux Superieur 12 - Fronsac ROYAN Paris * 1 - Barsac 13 - Graves - Bordeaux Cotes de Francs 14 - Graves superieures Bordeaux N 2 3 - Bordeaux Haut-Benauge et 15 - Graves de Vayres Entre-Deux-Mers Haut-Benauge 16 - Haut-Medoc LE VERDON-SUR-MER 4 - Cadillac 17 - Lalande de Pomerol O E 5 - Canon Fronsac 18 - Listrac 6 - Cerons 19 - Loupiac Gironde 7 - Blaye, Cotes et Premieres 20 - Lussac Saint-Emilion Cotes de Blaye 21 - Margaux S 8 - Cotes de Bordeaux 22 - Medoc Saint-Macaire 23 - Montagne Saint-Emilion 9 - Cotes de Bourg 24 - Moulis LESPARRE-MEDOC 22 10 - Cotes de Castillon 25 - Pauillac 11 - Entre-Deux-Mers 26 - Pessac-Leognan ATLANTIQUE 31 27 - Pomerol 16 28 - Premieres Cotes de Bordeaux PAUILLAC 7 25 29 - Puisseguin Saint-Emilion 30 - Saint-Emilion et 33 Saint-Emilion Grand Cru BLAYE 31 - Saint-Estephe 32 - Saint-Georges Saint-Emilion 18 9 24 * 33 - Saint-Julien

OCEAN 34 - Sainte-Croix du Mont D 21 o 35 - Sainte-Foy Bordeaux G r do a gn ro e n 36 - Sauternes n 20 e 12 17 2 23 29 16 5 27 32 10 15 LIBOURNE 30 BORDEAUX

35 * * 28 26 11 4

28 3 SAUVETERRE

Region Nord-Ouest 19 13 13 14 8 Region Nord 6 1 34 Region Est Limite Ouest du vignoble de Region Sud-Est Bordeaux LANGON Region Sud-Ouest 36 * Les Bordeaux et Bordeaux Superieur offrent une diversite de vins: rouges, * roses, clairets, blancs secs, blancs moelleux,cremants, qui constituent chacun une appellation.Ces vins sont produits sur l ensemble du 0 10km vignoble.

Map 1. The Bordeaux wines AOCs (Photographic credit: CIVB). Source: CIVB (http://bordeaux.com/Data/media/CarteVignoble2009_ PDF). 80 The Open Geography Journal, 2011, Volume 4 Marie-Claude Bélis-Bergouignan

4.2.1. Relationships with Suppliers together to preserve the interests of both producers and consumers. Despite their overlapping, regulatory devices The presence of specialized suppliers is a factor of the have played and play an undeniable role in structuring the cluster’s performance. There is mutual dependence between cluster whether obtaining the collective information at lower suppliers and players on the field. These suppliers represent cost or accessing to administrative and physical resources. a broad range of supplementary activities: seeds, fertilizer, These devices have helped to focus the attention of players pesticides, cultivation material, casks, bottles and corks, to and to stabilize their environment, which has enabled the mention only the main ones. In the case of Bordeaux wines, development of the Bordeaux wines cluster during the 20th some of the suppliers have their head office located near century [7]. However, we will show that recent their market: vat manufacturers, vine and wine consultants, transformations of these devices represent a destabilizing bottlers [13]. Whereas agrochemistry (seed, fertilizer and factor, both involving innovation incentives but also threats pesticide suppliers) is represented by multinational firms for the most fragile players. (Syngenta, Bayer Crop Science, etc), as they have only delocalized their distribution and consultancy activities to 4.2.3. Interactions with Localized Scientific and Gironde. The suppliers’ role is not only to sell material and Technological Resources products, they also advise their local customers (cf. dotted In the wine sector, the R&D process is carried out line arrows showing circulation of knowledge in Fig. 1). through local organizations: technical institutes, such as ITV 4.2.2. Relationships with Regulatory Institutions (Institut des Techniques du Vin), representatives of producers (Chambers of Agriculture) and private firms. Since the end of the First World War, regulations Basic research is done by local public research organizations, concerning the French wine-producing sector, especially that universities, and engineering schools, providing knowledge of Bordeaux, have been based on the following multi-layered accessible to all. By using research results, firms or statutory regulations: local, national and European. These agricultural development centers are able to develop regulations, which have, for a long time, played the role of technological and organizational solutions, which they focusing device for the local players, have led to a labyrinth transmit to operators to ensure competitive wine production. of the methods of representing Bordeaux wines [32]. The research topics are diversified: improving vine AOC regulations were entrusted in 1935 to a public quality, oenology, vine quality and health, economics and establishment, INAO (National Institute for AOC). The management. Professionnels found in Bordeaux, like Denis INAO grants the approval to each AOC after analytical and Dubourdieu and Michel Rolland, have been respected, organoleptic tests, and defines its area of production (see worshiped and criticised. Their reputation goes far beyond above). As the AOC is a collective body, the vine-growers cluster borders, and wineries across the world have had the must manifest their firm involvement. Up to now, the AOC benefit of their oenological knowledge. The last decade has viticultural union, which unites all the vine-growers of each seen the creation in Bordeaux of the Institute of Vine and AOC, collaborates with the INAO to promulgate the texts Wine Sciences (ISVV), gathering the whole R&D and which will recognize the “appellation”, define the features of training potential of the cluster. Research results are the product, production conditions and methods for distributed in several forms, either directly to users, during controlling the elaboration process. training courses, through participating in policy forums of The CIVB (see above), a leading interprofesional various organizations, meetings (conferences, technical organization uniting brokers, vine-growers and merchants, publications, etc.), and trade shows, such as VINEXPO14 or ensures three missions; first, to improve the quality of VINITECH. French state and local authorities funding of Bordeaux wines, secondly, to ensure its world-wide shared cognitive resources, despite the actor’s unequal notoriety and, thirdly, to support advertising, press and access within the cluster, undoubtedly promote technology public relations, as well as promotion in sales outlets. transfer and learning through the activation of formal and Cooperatives are formed within the Aquitaine Federation for informal networks. Cooperative Wineries (FCVA), which represents an 4.2.4. The Local Response to Global Market Conditions organization for protection, promotion and information, although it has no marketing mission. It is now widely-known that judgments from prescribers—especially the US wine expert Robert Parker, The AOC procedure is recognized throughout Europe, for Bordeaux wines—are cognitive cues for a large number being governed by regulations relative to the Common of players in the world of wine, whether producers or Market Organization (Wine CMO, created in 1970), which consumers. In Bordeaux, the so-called wine parkerisation, determines the VDQPRD class (Quality Wines Produced in Determined Regions), within which AOC wines are listed, stemming from Parker’s testing device, first intended to 13 serve as a guide for consumers, has undoubtedly led us back thereby differentiating themselves from table wines . to recommendations concerning the practices of certain The International Organization of Vine and Wine (OIV) producers. is a scientifically and technically-based intergovernmental organization whose mission is to create standards aimed at 14 developing the international wine business. The standards Created in 1981, VINEXPO Bordeaux is held every two years. It now represents the worldwide meeting-place for large business operators in the result in recommendations for member states, who strive trade of wines and spirits. Created in 1977, VINITECH is the reference for professionals of the wine industry from the world over, through an international exhibition of equipment and services for viticulture and 13Includes ‘vins de pays’, whose geographical origin is recognized, and oenology, seminars and conferences, which make it the international actual table wines. crossroads of knowledge and expertise. Bordeaux Wines: An Archetypal Terroir Cluster? The Open Geography Journal, 2011, Volume 4 81

INTERNATIONAL ORGANISATIONS: OIV, Wine CMO

NATIONAL ORGANISATIONS: INAO

SCIENTIFIC AND TECHNOLOGICAL SUPPLIERS RESOURCES Inter-profession: CIVB Seeds ITV, ISVV Federations of Fertilizer, Pesticides cooperative wineries: VINEXPO, VINITECH Cultivation material FCVA Viticultural unions: School of Wine AOC Casks, Bottles Wine makers / Wine Corks marketers Advisory co.

Independent Vine-growing Cooperative vine- vine-growers traders growers 70% of area 5% of area 25% of area 71% of volume 4% of volume 25% of volume

Brokers Cooperative wineries

Merchants (traders) Union of 70% of distributed volume cooperatives 14% of distributed Direct volume sales: 16% of Wine-making distributed traders Logisticians volumes

DISTRIBUTORS Direct selling, Mass marketing, Hard Discount, CHR*, Exports

ACTIONS DIRECTED AT THE MARKET - Purchasing advisors, journals, publications, marketing, advertising, reputation

Grape and Influence Knowledge and wines circuit information flow New player CHR*: Cafes, Hotels, Restaurants

Fig. (1). Bordeaux wines cluster (source [7] modified and adapted by the author). 82 The Open Geography Journal, 2011, Volume 4 Marie-Claude Bélis-Bergouignan

Marketing being among its main missions, the CIVB, capitalize on the word 'château' focusing on desire and which turns to be the dominant organism of the whole seduction15”. Towards other foreign unaccustomed system, has implemented marketing efforts aimed at consumers, the purpose was to enhance the Bordeaux wines maintaining and developing an economic environment friendliness and modernity, while suggesting different conducive to the wines of Bordeaux. These efforts consist in consumption modes, especially between meals. promotion, advertising, public relations, the press and In addition, the CIVB has promoted Bordeaux wines in training conducted by Bordeaux’s Ecole du Vin. Sales force an adding value price range towards key national accounts coaching is carried out in collaboration with instructors from and major international and regional wholesalers. Finally, in the Ecole du Vin, for which 15,000 professionals were qualitative terms, the interprofesion developed a downstream trained in 2007. Training these prescribers has intensified the quality monitoring method, governed by an interprofessional operation known as "Affordable Bordeaux" (see Table 1); an agreement and signed by the three categories of players: operation aimed at both professionals and the general public, wine producers, traders and brokers. highlighting the modernity and accessibility of Bordeaux wines. Once the wines have been selected, journalists and Upstream, the Bordeaux region has proceeded to representatives from the targeted importing country (buyers, establish a vine grubbing up program that led to the removal importers, wholesalers, wine merchants, and restaurateurs) of 1,200 ha in 2006 and 1,000 ha in 2007 (see Table 1), a are invited to a promotional event. Since their inception in measure that is now generalized through the EU granting aid 2005, "Affordable Bordeaux" have been twice round the to producers who leave the sector after grubbing up vines. In world, in capital cities, including Tokyo, London, Shanghai, a complementary way, “crisis distillation” of 185,600 hl in New York, Paris and Berlin. Thus, the implementation of 2005 and 368,000 hl in 2006 (see Table 1) was implemented, marketing or promotion of wine product, including the strategy which is now limited. Accordingly, this strategy has interprofesional initiatives, contributes to the reputation of allowed the absorption of available stocks and a subsequent the place and to the formation of a collective market power, resumption of sales. thus strengthening the cluster’s competitiveness. But such support did not prevent the degradation of the We shall see below that these stylized features are generic red AOC Bordeaux. These AOCs low priced wines partially undermined by recent changes. saw their average price fall from 100
/hectolitre in 2005 to 70
in 2006. Their current net outcome per hectare, either for 4.3. A Cluster Incurring a Transformation Process bulk or for cooperative wines, has been falling to almost Following the shock of the crisis of the years 2002-2005, zero, thus excluding any possible remuneration for vine- but also because of gradual changes over the nineties, very growers work. This demonstrates, for the generic Bordeaux sensitive transformations have modified the existing wines, the limits of an inversion of sales decrease strategy interactions within the wine value chain. These based on lower prices. transformations in the implementation of short-term actions, 4.3.2. New Players Intercalated Between Production and aimed at slowing down the effects of the crisis, have brought Distribution about the appearance of new players characterized by new skills and new interactions through a concentration and Cooperatives are equipped with specific business financialization process. These transformations testify both structures, aimed to enhance their production, independently, changes in the roles and influences inside the cluster, and the in the form of Cooperative Unions (see Fig. 1) or by actor’s strategic reorientations, notably from supply-pushed resorting to mergers [11, 12]. There are four cooperative towards market-pulled strategies. business entities: Alliance Bordeaux, Prodiffu, Producta and Univitis. They market the wine using their own brand, which 4.3.1. Implementing Short-Term Coordinated Actions enables a much more offensive strategy on both the home In the Bordeaux area, the wine difficulties have resulted market and in exports. At the same time, they give vine in excess production on all markets. This oversupply has led growers advice in technical matters and quality almost mechanically to poor sales, rising inventories and improvements, a strategy which aims at boosting their range falling prices. Thus, on their own side, growers have of products. registered sale and cash difficulties while the professional Secondly, wine merchants have occasionally been known and interprofesional bodies noted also lower bids from to get together [7] when identifying with a growing control brokers. The answers given by the local regulatory bodies, in the value chain and by developing specific wine- including CIVB, have been oriented both downstream and producing sites. This orientation, implemented in 1967 by upstream the value chain. Sichel, then by Baron Philippe de Rothschild S.A. in 1991 Downstream, CIVB marketing efforts mainly seek to (in Saint-Laurent-du-Médoc), has mainly developed since maintain and develop a conducive environment to the 2000, the wine producing potential of each site increasing Bordeaux wines. The strategy has focused the prestige over the years: Malromé in 1999, Dulong in 2001 ‘château’ as the driver of a collective ‘Bordeaux image’, (associating with Caves de Landiras in the Grands Chais de benefiting also trademarks. Towards French consumers, France group), CVBG (Dourthe-Kressmann) in 2002, Baron marketing has promoted slogans conveying the concepts of Philippe de Rothschild S.A. in 2004 (in St-André-du-Bois) accessibility, diversity and friendliness. Abroad, European and SOVEX in 2004 in Ludon. Despite these more offensive traditional markets have been targeted, but also emerging or strategies, the merchants business remains quite weak for the high potential markets, like Asia, North America and Russia. moment. It is trapped between vine-growing, which is prone Vis-à-vis the European market, the idea was to “humorously 15CIVB (http://www.bordeaux.com). Bordeaux Wines: An Archetypal Terroir Cluster? The Open Geography Journal, 2011, Volume 4 83 to erratic variations concerning bulk wine prices, and the causes for its difficulties in competitiveness. This is the difficulty of setting up grapes supply contracts to enable reason why, between 1995 and 2005, cooperatives and their stabilization, following the example of the Champagne merchants insisted on a concentration process already experience. initiated in previous periods [11, 12]. The wine cooperatives Logisticians, who are developing rapidly, also present a have therefore made further reorganizations, and particularly in distribution, to influence the market. The merging process sensible change, downstream the value chain. Their has greatly reduced the number of cooperatives, which, in emergence is related to the awareness of administrative or turn, have favoured mergers with other wine cooperatives reglementary (sanitary or environmental) questions, which localized in the same Bordeaux area. This demonstrates the are more and more difficult to handle, accompanied by the influence of geographic proximity and the fact that the complexification of the markets. These facts are pushing for a professionalization of logistics and are favorable to its cooperatives are still linked to their territory. On the other hand, the new territorial organization has widened their providers: professionals from the traditional logistics productive and market abilities. Considering the range of (transport, platform manager...), but also from other concentration methods adopted by wine merchants, it would professions like distributors etc. seem that acquisitions dominate, followed by mergers [12]. In fact, logistics have taken hold of the food industry— All merchants share the motive for adapting production and especially that of vine-growing and wine-producing— and/or marketing to new demands, especially to New World later than most sectors of industry. In Gironde, these types of consumption. Selling is the main argument, which, logisticians are locally established and companies are mainly in conjunction with financial arguments, stimulates the linked to road transport, offering supplementary storage, opportunities either for taking over an estate or for marketing making up parcels and packaging— which includes wine assets. These sales points, in favour of qualitative adaptation bottling, distribution and the final delivery. Indeed, to meet the demand, are reinforced by drastic restrictions concerning Bordeaux wine, logistics combine with from recent European regulations concerning quantitative outsourcing [7, p. 67]. Some of these new players are the adaptations of supplying demand (cf. Table 1). result of successive merger-acquisitions of big operators, According to Réjalot’s expression [7, p. 221], “a Bord- such as the three main groups, Euralog, Partenaires and eaux château is the object of desire”. Numerous examples Mitsiu, announcing the appearance of new professions which confirm the growing appetites of institutional investors for imply, moreover, new structuring. This notion of logistics penetrating the value chain is advantageous for vine-growers lucrative investments. International corporations have bought some of the main châteaux. FFP (Landholding Trust, run by and merchants who see considerable improvement in their Robert Peugeot), became the major proprietor of Château penetration power into international networks of wine sales. Guiraud in 2006. Concerned with preserving the future of They are, through logisticians, relieved of direct material her company, Mme de Lencquesaing, who took over a worries, thereby enabling them to focus on their core vineyard in 1978, decided to transmit her property (Château business: the definition of quality of wines and the prospection of the relevant market. At the same time, the Pichon Longueville Comtesse de Lalande) to Maison de Champagne Louis Roederer (the Rouzaud family). LVMH optimal and stable preservation, ensured by logisticians, (Moët Hennessy Louis Vuitton) invested in the Bordeaux procure organoleptic as well as financial value to stored cluster in 1996, taking control of Château Yquem wines, while ensuring traceability. (Sauternes). Clément Fayat (logistics) owns 5 châteaux: This strategy is not, however, without danger as it might Clément Pichon (Médoc “cru bourgeois”), La Dominique lead to upsetting upstream-downstream flow orientation. It (Saint-Émilion “cru classé”), la Commanderie de Mazeyres promotes logistics from its subordinate position to a et Prieurs de la Commanderie, an AOC Pomerol and château prominent role, through linking wine producers with Vieux-Fortin in Saint-Émilion. Already owner of three Saint- distribution in numerous cases. The outsourcing of logistics Émilion chateaux, La Mondiale, an insurance company, has might, indeed, as long as the logisticians have business and just purchased the château of Cadet-Piola which belonged to marketing knowledge, be a marginalization factor of the the Jabiol family. Château Pedesclaux, 27 ha, “cru classé”, in traders. It could go as far as modifying insight into the wine Pauillac, used to belong to the Jugla family and has been product through qualitative requirements, and therefore bought by Jacky Lorenzetti, founder of Foncia, a property influence its conception. It could also serve as a form of group, who already owns château Lilian Ladouys in Saint- disconnection regarding the territory, as, although logistics Estèphe. Finally, "Longhai international trading Co Ltd" - a establishments have been set up close to the vineyards, they Chinese property group - has officially become the also connect directly with large motorway link-ups and road proprietor of Château Latour-Laguens, an estate within the junctions. Bordeaux Supérieur appellation. 4.3.3. New Interactions Through a Concentration and The extent of this phenomenon has been exagerated by Financialization Process some observers and played down by others. Today, we have no accurate data enabling a correct estimate, particularly Some French reports [10] assume that Bordeaux wines concerning property purchased by foreigners. According to have become inadequate compared to those of the New World in terms of consumption. This simplistic view has Réjalot’s estimations [7, p. 223], relying on the case review between 1975 and 2003, around 150 properties have been been rapidly challenged by alternative diagnosis, drawing taken over by investors from outside the region. This figure attention to the articulation between supply and demand side represents approximately 5,300 ha of vines, 4,700 of which questions. The over-atomized structure of Bordeaux wine are red, including 1,700 ha in “Grands Crus Classés” clusters has been especially targeted as one of the main (prestigious vineyards representing 36 large estates). There is 84 The Open Geography Journal, 2011, Volume 4 Marie-Claude Bélis-Bergouignan no doubt that wine is a symbol of an attractive financial rooted in their dependence on Bordeaux. “This business investment and a source of diversification for investors, guarantee can be considered to be Gironde’s actual birth confirmation of which we have witnessed during the recent certificate of quality” [9, p. 54]. Dutch, English and German subprime crisis. At the same time, for the last ten years we businesses, set up in Bordeaux, gradually took over the wine have seen, more than “the chateau rush” itself, the increasing trade and transport, thereby putting the finishing touches to the investment in chateaux wines, via the creation of hedge- formation, later enabling subsidiairies to open abroad, and, from funds, such as Ascott Wine Management SA., based in the there, the early internationalization of Bordeaux’s wine Bahamas. These investments, which are a source of business. From this time onwards, the Bordeaux wine cluster diversification for investors, are part of the speculative was committed to a trajectory of quality wines, strongly bubble which characterizes the great wines of Bordeaux. internationalized by the trade. It is now necessary to turn to the symbolic and regulatory As for “the invention of great terroirs”, this is not the fruit of dimensions of châteaux and terroirs, which are constitutive a decree, but one of years of patient work and experience on the of the Bordeaux wines cluster. part of vine-growers. The terroirs could undoubtedly be differentiated in terms of quality, right from the beginning, 5. CHÂTEAUX AND TERROIRS: A COEVOLUTION through the association of appreciations concerning OF SYMBOLIC AND REGULATORY CONSTRUCT- pedoclimatic conditions and the quality taste of the wines. IONS However, there can be no mistaking in the fact that the By analyzing Bordeaux wines’ trajectory, it will be difference has been gradually made by the “virtuous circle of possible to bring to light what distinguishes Bordeaux, high quality vine-growing and wine-making” [9, p. 95]. beyond the interactions structuring the cluster; that is to say, The appearance of the Bordeaux “château” emanates the château and the hierarchy of its terroirs. This distinctive from this quality trajectory and not from actual architectural feature must be related to the idea, expressed by Patchell inheritance. Admittedly, the vine-growing estates which use [33], that “the estates require a strong territorial reputation the name, draw their roots from former seigneuries, but and the territory needs differentiation between estates, and, bourgeois origins are also frequent [24] and, from an usually, outstanding estates to initiate a reputation of architectural point of view, seldom are they real châteaux. excellence”. Thus, we will see that if the today global Saint-Emilion’s territory was established in the XIIth century competition has amplified this phenomenon, the construction by the Duke of Aquitaine and King John “Lackland”of of the collective reputation of Bordeaux wines has always England; its jurisdiction rating in UNESCO’s world heritage been coupled with strategies of differentiation. It will also be no doubt conveys the recognition of architectural value. In an opportunity to moderate the abusive assimilation of these reality, this recognition owes a lot to a patrimonial complex distinctive terroir signs, via the hybridisation with which the associating the territory, the vine-growers and their cluster was originally made up. emblematic product. 5.1. Bordeaux Wines, Châteaux Wines In actual fact, “the irresistible rise to power” concerning the “château” phenomenon only really started to gain There is more than one characteristic of Bordeaux vine- th growing, but undoubtedly its main characteristic is that on importance in the 19 century [9]. It is the result of technical the strength of which the wine perfectly identifies with the developments, particularly vital strides in oenology, carried estate where it was produced, to the point of being presented out in the cluster and through the impetus of Bordeaux wine under the name of this estate, often gratified by the term producers [7]. These developments enabled economic and “château” [7, p. 28]. In the Bordeaux area, as opposed to social changes to the wine making process, which was only other vineyards, the wine is actually named after the estate just materializing at that time [24]. In this manner, the from which it comes and not by that of a merchant or a brand enormous wine cellars had one technical and economic aim, name. The château’s name should not be applied to vine- which was to manage, in quality and quantity, growing growing estates if they are members of a cooperative winery volumes of harvested fruit, at the same time housing nor to a business which usually bears the name of the machinery, ploughs and wine presses. The château was also merchant and/or the brand name. a “social microcosm”, founded on the private estate and no longer on the feudal domain [7], thereby associating the The château is an original creation which is inseparable owners with the manager, the cellar master and the cellar from Bordeaux wines’ trajectory. workers. Finally, the château gave birth to a complex entity Vine-growing made its first appearance in Bordeaux during with an “aristocratic” aim associating a given territory, a the first centuries of the Gallo-Roman occupation; it seems that product and its owner which the Bordeaux label would the Bituriges had imported vine plants from the Empire, which symbolize. All the ingredients for a construction ensuring the adapted well and resisted winds and damp. Basilica was the reputation and prestige of the product were now assembled. original name of the vine, later to be known as Biturica [9, p. 5.2. Multiple Ratings Creating Hierarchy: Crus Classés 37]. The reputation of the resulting wine spread across the and AOC whole Empire. Subsequently, during the Middle Ages, “Bordeaux’s exorbitant privilege” was dedicated to exports [9, 5.2.1. Crus Classés p. 52]. The English, who occupied Aquitaine at that time, The second characteristic of the Bordeaux wine cluster is granted Bordeaux an extraordinary exemption from paying the attention given to terroir hierarchy, via classifications export taxes, which led to creating the unique wine exporting which are, strictly speaking, ratings for assessing and/or port of the South West of France. A long period of inactivity followed in secondary vine-growing areas, such as Bergerac, Bordeaux Wines: An Archetypal Terroir Cluster? The Open Geography Journal, 2011, Volume 4 85 reorganizing estates or products [34]. The uniqueness of its in 1935, a law on the AOC marked ‘victory’ for vine- many different ratings makes Bordeaux’s territory a model. growers over the wine trade [36], thereby institutionalizing the quality and ensuring a privileged position for French Actually, terroir hierarchy has always existed in the wines on both national and international markets. AOC world of wine, whether it concerns the Bordeaux cluster or other vine-growing areas. It is untrue to claim that these regulations have endured, particularly because they emanate a “restrained laisser-faire”. In fact, during negotiations, ratings were invented in Bordeaux [9, p. 49] as de facto where both wine producers and the state aim at determining hierarchies already existed, even going back as far as production rules, it is the wine producers who decide on Antiquity. Nonetheless, the Bordeaux cluster was the first to these constraints even if public regulations strongly constrain attach an official classification to its wines. This is “an the producers’ range of technical and business choices. official procedure which grants a vineyard with a distinction and a position within a qualitative hierarchy” [7, p. 318]. “Created in order to fight against fraud, the AOC is now Bordeaux has four ratings, depending on the sub region and useful in backing collective quality strategies. Forces of law type of targetted production. The oldest dates back to 1855, and order will be called to intervene within the framework of and is still in force and only amendable for a 1973 “cru”16, these prerogatives, using “bimodal” regulations, which concerning the Médoc, Sauternes and a Graves cru. The guarantee the security of the products and encourage wine 1953 Graves rating was modified in 1959 and although it is producers to make efforts concerning quality. The legislator contested, is now unamendable. The third concerns Saint- assigns agents to procedures for quality management when it Émilion “crus”, revisable every ten years, and the fourth is impossible to define general rules applicable to all regions concerns Médoc “crus bourgeois”, also revisable every ten and areas of production” [36]. The diversity of AOC rules years [7, p. 318]. can be explained by this specific mode of governance, even concerning those between production areas which make up 5.2.2. Quality Institutionalized by the AOC the Bordeaux wine cluster. This diversity can sometimes be As opposed to New World countries, where either the the basis for the empowerment of certain AOCs. This fact is quality of the vine variety or the brand indicates the quality confirmed by Patchell [33] analyzing how the diversity in of wines, the French vine-growing field is composed in such integrating “collectivity and differentiation” of two a way that production strategies are structured according to Bordeaux AOCs leads to different accomplishment of “their whether they belong to an AOC, which, in turn, depends on territorial ambitions”. the notoriety of the region in which it is located [24]. Two It therefore appears that crus classés and AOC have problems were at the root of the procedure for functioned in such a way as to form a double barrier to stop institutionalizing the quality of wines: a case of fraud which 18 table wines and ‘vins de pays’ from entering, and instigated appeared at the end of the 19th century and a clash between an “appellation rent” [37] for reputed vineyards. This rent the wine trade and vine-growers at the beginning of the 20th was maintained until today causing an increase in the century. average value of vines in the area up to 58,220
/ha in During the second half of the 19th century, the supply of 200719. However, it mainly results of the explosion of the wine was not enough to satisfy a regularly growing demand, value of prestigious estates, like Pomerol that can be to such an extent that winemakers resorted not only to negotiated at around 900,000
/ ha. importing wine, but also to producing ersatz wine in order to cope with the growth in mass production. This type of fraud 5.3. Hybridizing and Blurring Distinctive Signs of Quality could have been very damaging to the reputation of vineyard17 wines on foreign markets. Stanziani [35] 5.3.1. AOC Multiplication and Fragmentation describes a situation of radical uncertainty which translates into the breaking of quality conventions: the standards of the Since 1935, different appellations (AOC) have met with a period do not meet the new questions, especially because the reduction and fragmentation phenomenon as the Bordeaux wine industry becomes the scene of a controversy over fraud wine cluster trajectory has developed. We have already and forgery. The parliament addressed the crisis through the observed that 57 appellations now exist, thereby attesting the 1905 law, which paves the way for an institutional definition limits of the model. Furthermore, each AOC is also of main products, precise enough to establish the rules of the fragmented: the Médoc has Médoc and Haut Médoc game and at the same time flexible enough to make the appellations, which, in turn, come under the names of their competition practicable. districts (Margaux, Moulis, Listrac, Saint-Julien, Pauillac, and Saint- Estèphe). Next come the first “crus classés”; all These laws were followed by further series of measures these demarcations which fit together and regulate, a priori, aiming at consolidating and extending the protection of vine- the quality of the wines are, nevertheless, a source of growers from the wine trade, the main trouble-maker. The confusion. They make the quality of wines incomprehensible outcome was to see the Gironde demarcated as an exclusive for consumers, who are not connoisseurs, but who are the vine-growing area, excepting forest areas, in 1907. Finally, principle potential consumers.

16A “cru” is a vine-growing estate or vineyard. A “cru classé”, strictly speaking, indicates an estate found in the list of “crus” distinguished by the 1855 ratings, the Graves ratings or the Saint-Emilion ratings. Broadly speaking, it refers to any vine-growing estate which has been distinguished by one of the four great rating systems. 18‘Vins de pays’ guarantee a geographical origin, which is not the case with 17Sometimes a “fermented mixture of raisins, redcurrants and other table wines (basic vines), but they cannot be approved by the AOC. ingredients” was hidden under the labels [24]. 19Source: http://agreste.agriculture.gouv.fr. 86 The Open Geography Journal, 2011, Volume 4 Marie-Claude Bélis-Bergouignan

5.3.2. Châteaux and Brand Proliferation Versus Basic several of these châteaux guarantee their identity, as much as Bordeaux possible, through brand registration, which is presumably of value for the most prestigious, but which only ensures trivial During the fifties, more or less only “crus classés” could protection for many of those whose typicity and identity be found under the name of château, representing a small remain uncertain. number, as other vine-growers were developing and selling their wine in bulk to merchants who, in turn, developed The Bordeaux cluster is therefore litteraly held in hostage brand wines. Over the following decades, the number of by the juxtaposition of its signs of quality: châteaux, brands, small estate wines labelled “château” has multiplied in appellations, “crus classes”, etc. Bordeaux, to such an extent that, nowadays, only a few To summarize our developments on the terroir dynamics wines fail to have this designation. This proliferation, along of the Bordeaux wine cluster, it appears that Bordeaux with mass marketing wines to supermarkets, has contributed survives as a collective brand of great value, but its terroir to a complex situation where any legibility concerning image suffers from the results of far too much opportunist distinctive signs of quality has been diminished, at the same behaviour and of an excessive differentiation, difficult to time undermining the offer. interpret in terms of quality. Also, “stowaways” in the form In the same way, wine brands have also developed. It is of wine producers take advantage from Bordeaux’s generic well-known that, traditionally, Bordeaux vineyards had very appellation name without developing a product with the few world-famous brands, excepting Rothschild’s Mouton- quality required and expected by consumers. Hence, highly Cadet which was launched in 1931. Brands are developing hindering disillusions at term because the wine’s rapidly, particularly in connection with the wine trader’s spontaneous perception will have been tainted. attempts to win back its lost influence. Consequently, 6. PRESENT CHALLENGES: FROM INNOVATIONS modernizing the wine trade has led to a movement of TO NEW REGULATIONS? concentration which works in favour of brand development on a global scale. The top-ten Bordeaux brands are (see Since 2008/2009, the Bordeaux wines cluster has been Table 1), in descending order of sales: Mouton-Cadet encountering difficulties. It should be noted here that the (Baronnie), Malesan (Castel), Baron de Lestac (Castel), problems affect not only the cluster of Bordeaux, since most Cellier Yvecourt (Yvon Mau), Ginestet (Ginestet), Dourthe countries of the Old World producers are also struck down n°1 (CVBG), Marquis de Chasse (Ginestet), Premius by the regression of their market share and by difficulties to Exigence (Yvon Mau), Calvet Réserve (BVC) and Sirius optimize the differentiation and quality of their products. (Sichel). The Bordeaux cluster must confront crucial questionning As a matter of fact, Bordeaux looks like a two-tier concerning its terroir original strong point, for which economy [38]. While land prices for appellations such as solutions are seeked through motivating its capacity for Saint-Émilion, Margaux, Pomerol and Graves have risen up innovation and reforming the representations of quality to millions / ha, there has been, since 2000, a profound linked to the terroir. depreciation for less prestigious appellations, particularly for basic Bordeaux red. Concerning the entire home market, 6.1. Motivating the Potential for Innovation sales of low-priced Bordeaux wines have continued to drop. Challenges are such that Bordeaux wine players have This is characteristic of a structural crisis and is attested in taken the step which separates an albeit regulated but still figures showing the development of sales volumes in 2007 spontaneous organization, from an organized cluster (cf. Table 1). Prestigious appellations are still increasing founded on innovation’s most systematic research [8]. The their sales: Pomerol, Saint-Émilion, Fronsac: + 3%; Médoc, creation of this organized cluster already represents, as it Graves: + 2%; Bordeaux Whites: + 2%; Bordeaux Moelleux stands, an organizational innovation, aiming at both (markedly sweet): + 7%; Bordeaux Liquoreux (luxurious reinforcing cognitive interactions between the players and at dessert): + 2%; whereas figures for less prestigious surpassing the blocking coming from collective regulations appellations have fallen: Côtes de Bordeaux: - 4%; Bordeaux which are often conflictual. The displayed ambition of this Reds: - 6%, Bordeaux Supérieur: - 5%. Moreover, prices of cluster named “Bordeaux-Aquitaine Inno’vin”20, the only the less prestigious appellations have fallen steeply from one in France based on wine, is to reinforce the region’s highs in 2001 and 2002. The excellent performances of position as world leader in wine trade and production, as Bordeaux wines on export markets do not include these wine well as the field’s competitiveness on a national and categories as only 10% of producers actually export their international scale, thanks to partnerships between wines and this activity is concentrated on prestigious companies and research and training. châteaux, whose prices have soared since 2000. 2007 vintage wines are sold at two or three times the price of those of Admittedly, Bordeaux’s place is still the driving centre in the field of wine. But the fact remains that the vineyard is 2000. losing, not its glory, legendary as it is, but its energy [24]. 5.3.3. Blurring the Signals… This lack of dynamism lies partly in the former CIVB’s orientations. The strong CIVB emphasis on market issues Confusion has been reinforced by the fact that has overshadowed the focus on research and innovation. For “concerning terminology, attention can but be focused on the frequent proximity of brands with names of known châteaux example, the cluster lacks any grand architectural projects, touristic organization or marketing of wines developed by or an AOC or rural constructions” [7, p. 34]. In return, the large volumes and similar marketing methods of some 20 châteaux make them resemble brands. It should be noted that This cluster covers not only Bordeaux vineyards but all the vine-growing and wine-producing regions of Aquitaine (South-West France). Bordeaux Wines: An Archetypal Terroir Cluster? The Open Geography Journal, 2011, Volume 4 87 sustainable processes or by other vine-growing and wine- produces, and techniques and procedures it proposes, far making clusters [24]. These short-comings have been from competing in the uniformization of wine taste, highlighted for a long time and a recent project has oenology, on the contrary, must, opposite to a world-wide attempted to find a solution by developing the concept of a “fast wine”, contribute to diversifying and personnalizing the “cultural wine centre”, associated to the desire to create an global offer as much as possible, and particularly the events complex and a place for meetings and activities in European offer” [42]. Knowing that this research, well Bordeaux. represented in Bordeaux, is indicated at product diversification and typicity, it can, no doubt, be predicted Anyhow, Bordeaux assets are still well-known within the that Bordeaux wines—whose typicity is an asset—will resist field of innovation. Moreover, the Inno'vin’s strategy, with the tendancy to uniformization, which others have not which CIVB recently collaborated, is innovation-driven around subjects like the development of oenological research resisted. In the end, New World wines will also need to diversify. For all that, is there a future for table wines, or at about wine typicity or about wines at low ethanol content, least for ‘vins de pays’22 in Bordeaux, or should they be the adaptation of plant material to climatic changes, the sacrificed [37]? Solving this problem requires the search for alternatives to the use of pesticides and the implementation of concerted strategies, as they alone are development of platforms for experimentation and capable of counteracting the downward spiral binding prices technological diffusion. The players’ innovation skills are intended also to be reinforced via the growing spread of both and quality, and ultimately undermining the foundations of AOC wine production. technological and organizational innovations, in order to fight against cluster segmentation between the minoritary 6.2. AOC and Terroir in the Light of Recent Regulations élite and the rest of the profession. We have observed that, in the Bordeaux region, the vine- Bordeaux’s decision to support innovative activities is growing and wine-producing conflict between crus/terroir not exceptional as strong wine regions in Italy adopted a and vine variety/brand no longer has much sense, as similar strategy. Piedmont, for example, “enacted a law references to these two dimensions are so inseparably designed to promote the emergence of a regional system of intertwined. Ultimately, all forms of expression concerning research and innovation, and identify the main guidelines vine-growing and wine-producing (brands, vine varieties, and objectives in terms of supporting scientific research” estates) maintain a complex relationship with the notion of [39, p. 157]. Tuscany which “exploded on the world stage terroir [7, p. 219], taking into account the fact that terroir when the Super Tuscans appeared in the late 1980s” [40], can be agronomical or social, that is to say, characterized, seems to re-focus on its historic roots, from brand strategies beyond any reglamentary or legal aspects, by cultural and to traditional winemaking and some appellation regulations. aesthetic aspects, including property rights. Not all Italian regions are as famous as Piedmont or Tuscany. This is why these other areas are active in the The AOC model has now reached the parting of the ways promotion of tourism local systems. On the Spanish side, the at the same time as, paradoxically, according to Calvet [43], famous Rioja21 insists in raising collective organizational “the wine’s geographical origin has acquired such symbolic devices in order to facilitate the involvement of public intensity that even the most standardized wines can but authorities into the long term wines strategic plan. Like other evoke it”. In fact, this reference leads, beyond the European regions before them, Rioja insists in promoting its divergences and potential conflicts of interest between image and the Rioja wine consumption, through the players, for example between traders and vine-growers, to promotion of wine tourism on the one hand, research, the re-emergence of the focal issue of quality around the innovation and training in the wine sector on the other hand. issue of sustainability of the AOCs. According to observers, Spain illustrates two contrasting In 2002, some French reports [10] analyzed the question strategies [41]: those of traditional producers who do not and produced the following alternatives. Either the AOC adapt their products portfolio fast enough, and those of the reinforces its reglementation and controls so as to assert its private importers “that could appeal to the American market. quality credibility or it is abandoned. As there is a cost to These importers, led by Wine Spectator and The Wine quality, the first choice would rule out some AOC vineyards Advocate, won the attention and the backing of the major and give access to ‘vins de pays’ which fulfil AOC wine outlets in America and in so doing succeeded in conditions, while table wines would remain open to correcting Spain’s somewhat stodgy downmarket image” international brand competition. Eventually, even if it means [41]. a reduced offer, French vine-growers would, in this case, Characterized by similar strategies, because deriving keep the AOC. Indication of geographical vine origins from the same records of receipts, but contrasting, however, subsisting, the second choice would result in favouring large because drawing differently to these different sources, the wine companies or distribution networks, which would have recent Bordeaux strategy mix relies more on technological succeeded in imposing their brands on the markets. grounds. In Bordeaux cluster, on the one hand, research into The recent Wine CMO reform (2008-2009), implemented oenology is always very dynamic whereas research into wine by the EU and applied in France, has been targetted to typicity, still in its infancy, needs to be developed. In fact, reduce overproduction, phase out expensive market despite its success, oenology still has far to go; the scope for intervention measures and promote an alternative wine- wine production is vast. “Through new aquaintances which it growing model, mostly based on that of the New World. This reform proposes the following lines: prohibition of new

21Plan Estratégico del Vino de Rioja 2005-2020, http://www.infoaliment. com/notasprensa. 22Vins de pays” benefit the geographical origin label. 88 The Open Geography Journal, 2011, Volume 4 Marie-Claude Bélis-Bergouignan plantings in place until 2016, while replanting is allowed CIVB might offer future perspectives for a renewed where producers undertake to grub up equivalent areas definition of terroir. But this is another story… planted with vines23, allowing European wines for export to use the wine-making practices forbidden by EU legislation, CONCLUSIVE REMARKS reorganization of the entire field of wine appellations. The During the above sections, the cluster has emerged as a later entails the abolition of unions defending each AOC to powerful tool for analyzing local food systems. This concept be replaced by ODGs (Management Organisms)24, is, in fact, able to transcend considerations of site specificity, privatisation of controls and their concentration, reduction in ‘à la Marshall’ to integrate, with the territorial dimension, INAO’s role as controller25. ODG creation formalizes the other dimensions. Thus, it has been shown that this concept separation between controlling signs of quality and origin, is only relevant in its extensive and multidimensional on the one hand, and their defence as well as their acceptation. First, we have seen how this holistic approach management, on the other hand. This takes the same stand as identifies market and non-market interactions between the desired clarification, because controls will be carried out players of the core value chain. It can then capture the hereafter by independent organisms. The second mission is critical elements that represent the links between the core within the scope of ODG, with which vine-growers must actors with peripheral actors, often providers of have membership in order to obtain a label for their complementary and / or strategic skills. This allows for not products. If there is only one ODG for one appellation, seeking the determinants of the system’s dynamics in which was not the case so far because several unions could external factors. Finally, the articulation of the territorial coexist within the same appellation, it is possible to have dimensions to others provides access to the historical several appellations within one ODG [44]. trajectory of the system, in terms of coevolution. On the one These reforms have not escaped questioning as to the hand, this view escapes all determinism, both in terms of the future of AOC wines, owing particularly to ambiguities system’s point of departure and its arrival. Moreover, this surrounding both control and quality efficicency. Moreover, interpretation opens the question of the cluster’s governance, the foreseeable AOC dilution within the AOP (EU which, notably, enables actors’ strategies and their conflicts recognized PDO, Protected Designation of Origin) marks a of interest to be integrated. new system which, in any case, requires a complete review The cluster concept has also provided some empirical of AOC’s qualitative conditions and the probable insights. We have questionned the cliché of the area of assimilation of ‘vins de pays’ in the AOP category. In Bordeaux wines being the archetypal terroir based cluster, Bordeaux, the ODG construction principle has been largely our demonstration relying on a gradual integrative approach: copied from the AOC principle. However, in some cases, the from the central chain to peripheral actors, and then to the AOCs reconfiguration results in the awkward coexistence, in construction of terroir. We have also shown that if Bordeaux the same geographical area, of several products, white or red is now undoubtedly a cluster, it should be accepted that it has wines for example, depending formerly on different always been due to its origins, particularly through its early appellations, now depending on a same management internationalization. Furthermore, coevolution dynamics organism (ODG). Hence the lack, albeit necessary, of have shown that strong players have changed over the clarification concerning the terroir concept, which may be Bordeaux trajectory, and that they are still in an evolving threatened by the substitution of a product principle [44], process. which would confirm fears expressed by players in the field. Beyond the Bordeaux example, and drawing also Despite its decisional power as this organization reflection from other authors [26, 36, 45], it is also possible combines all the wine professions, the CIVB is threatened by to illustrate that there cannot be any "pure” local or this spatial reorganization while not willing to devolve internationalized cluster. Thus, it appears that the wine powers. This portends difficulties of governance. On the one clusters’ development has followed different paths. We have hand, as the CIVB imposed the same rules to all growers seen that the Bordeaux cluster, classified as an Old World regardless of their specificities; as a result, some players are wine producer, integrated the international dimension to its aggrieved by the choices that CIVB has made in past years. construction. On the contrary, within New World wine On the other hand, the CIVB is seen to be an impeding actor producers, if the South Australia cluster has been constituted because it has so far played on the maintenance of the and built around “the desire to export” [45], “findings from segmentation between generic vineyards, district the Waipara cluster (New Zealand) demonstrate that the appellations, crus classés and wine traders’brands. In the desire to internationalise played no part in the wine cluster present context, one can validly raise the question of whether formation” [45, p. 2182]. Reciprocally, whereas the cluster concept is applicable to agrofood areas, research can attest that the social, symbolic and cultural characteristics must be taken into consideration when studying industrial clusters. 23The EU targeted an area of 175,000 ha to be grubbed up over a three year period (2008-2009 to 2010-2011). For 2009, submitted applications nearly Finally, the analysis concerning clusters opens up raised 160,000 ha, this over-subscription being due to low wine prices and arguments of strategic decision. In some respect, if terroir financial difficulties. appears to be an "invention", it seems to be a very powerful 24In the Bordeaux cluster, the 57 appellation unions have been replaced by 28 ODG (Organismes de Gestion). But the process is still in progress. one; but it has been constructed collectively by actors who 25INAO (Institut national des appellations d’origine) recently became INOQ have to be very careful regarding its meanings and, more (Institut national de l’origine et de la qualité) (http://www.inao.gouv;fr). important, its credibility. This informal asset has to be This change, towards more localised regulations, reflects the replacement of valued and thereby encounters critical tests that must be the control of AOCs, formerly preformed by INAO, by the control of overcome. These tests are currently summarized under what entrusted independant bodies along the rules chosen by each AOC. Bordeaux Wines: An Archetypal Terroir Cluster? The Open Geography Journal, 2011, Volume 4 89

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Received: February 11, 2010 Revised: July 16, 2010 Accepted: July 26, 2010

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